The value of transactions made through the Unified Payments Interface (UPI) channel during much of May grew faster than those made via mobile wallets and other prepaid payment instruments (PPIs), representative data released by Reserve Bank of India (RBI) showed. Between May 1 and 28, the aggregate value of UPI transactions stood at Rs 2,450 crore, 11.42% higher than that in the whole of April. On the other hand, PPI transactions in the first 28 days of May added up to Rs 2,280 crore, up 2.1% over the April value.
While data on UPI captures the value all transactions carried out through the channel, data for PPIs is sourced from eight non-bank issuers. The data does not account for transactions made on May 30 and 31 and the final data for the entire month could be higher.
In terms of volume, UPI saw 8.2 million transactions, far lower than the 82.7 million transactions clocked by PPIs. This brings the average ticket-size of a UPI transaction to about `2,988, while that of a wallet transaction works out to around Rs 276.
The average value of a UPI transaction is typically higher than that of a wallet transaction because use of the former channel has so far been limited to peer-to-peer payments, while wallets are more commonly used to make small-value payments to merchants. The wide gap between the two figures suggests that the National Payments Corporation of India’s efforts to push UPI acceptance by merchants are yet to bear fruit.
Barring UPI and wallets, every other mode of retail digital payment saw a month-on-month fall in value during May 1-28 in continuance of a phenomenon seen in April.
The value of transactions at point-of-sale (PoS) machines fell 6.3% M-o-M to Rs 38,590 crore. The value of card transactions had peaked in December to Rs 52,223.84 crore before beginning a slide in January, which continues into May. Data for PoS transactions are sourced from four banks.
The value of transactions made through Immediate Payment System (IMPS) slipped 8.2% to Rs 51,610 crore.
The Unstructured Supplementary Service Data (USSD) channel, meant for users of feature phones, fell 4.8% from April to Rs 28.72 crore. This marks the third straight month of a dip in the value of USSD transactions after it had peaked at Rs 38.18 crore in January. Usage of USSD has dropped ever since the launch of the Bharat Interface for Money (BHIM) app, which enables UPI transactions on smartphones as well as feature phones.